UK Spreadex Launches Bitcoin Trading
UK spread betting, Spreadex becomes the second regulated broker to begin offering bitcoin trading in the form of a spreadbet
UK spread betting, Spreadex becomes the second regulated broker to begin offering bitcoin trading in the form of a spreadbet yesterday. (Props go to Forex Magnates reader Jason Smith on alerting us about the broker). The volatile offering allows for both long and short selling, but does have its share of restrictions. Currently, trades are only available by phone, with spreads of 2.5%, and only 2:1 leverage. Additionally, placing stop orders in unavailable. Those are some hefty restrictions, but we imagine that they will loosen up as more firms enter the market.
Plus500 was the first broker to announced leverage trading last week (although there are conflicting opinions on whether it is available for live accounts). Like Plus500, Spreadex is a little known firm in the world of FX trading. So who is Spreadex? Spreadex is an UK regulated FCA firm who offers both sports and casino betting and financial trading, having acquired different brands over the years including the account book of MF Global Spreads in 2012. The firm currently offers accounts to both UK and non-UK customers with the exception of the US and Turkey. Unlike many other brokers, Spreadex doesn’t provide free demo accounts. Therefore users will need to open a live account (but can leave it unfunded) to see their platform.
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To learn more about their offering Forex Magnates reached out to Spreadex. Answering why they launched bitcoin trading, a spokesperson from Spreadex said “We had received requests from a number of clients asking if we were considering offering leveraged trading on the price movements of Bitcoin. Our traders have been looking into the possibility of offering the market to sit alongside our other extensive list of markets, and we have now offered the market via phone trading access only.”
Additionally, in relation to how order flow,will be handled and where the price is being derived, it was answered “Currently we’re making our own market, taking clients’ positions onto our book. But in the event we decided to hedge, we would look to use established exchanges where necessary.” Also, they added that they are using MtGox pricing to establish their spreads.
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This all makes sense. Slow and stead release of a new product. I take it will be treated as a “metal” in terms of leverage. We may not see 1:500 leverage, but i think 1:50 or 1:100 is not unimaginable with some maturity and increase in liquidity providers.
This all makes sense. Slow and stead release of a new product. I take it will be treated as a “metal” in terms of leverage. We may not see 1:500 leverage, but i think 1:50 or 1:100 is not unimaginable with some maturity and increase in liquidity providers.
@Jon, have you looked at the liquidity available on most of the exchanges? Offering 100:1 would probably be a liability for the broker when pairing off risk. :/
@Jon, have you looked at the liquidity available on most of the exchanges? Offering 100:1 would probably be a liability for the broker when pairing off risk. :/
by the summer it should get interesting as we’ll see a whole bunch of more multi-exchange platforms (see coinsetter article) and brokers be live with it
by the summer it should get interesting as we’ll see a whole bunch of more multi-exchange platforms (see coinsetter article) and brokers be live with it
http://www.spreadex.com/financials/trade-bitcoin/
shouldnt you blank account details on the pic ?
http://www.spreadex.com/financials/trade-bitcoin/
shouldnt you blank account details on the pic ?
@joov – It’s a platform snapshot that they sent us. Thanks for mentioning it
@joov – It’s a platform snapshot that they sent us. Thanks for mentioning it
All this bitcoin trading are only CFDs or contracts based on the bitcoin price. You are not actually trading bitcoin, but another instrument that is based on the bitcoin price (underlying asset is the bitcoin). As such, and as long as the it is not going to any exchange, as long as those who offer it are market makers, wont affect anything with bitcoin price.
Anyhow, Mt Gox has been hit by a huge lawsuit yesterday. I hope it’s end wont be like the end of e-gold.
All this bitcoin trading are only CFDs or contracts based on the bitcoin price. You are not actually trading bitcoin, but another instrument that is based on the bitcoin price (underlying asset is the bitcoin). As such, and as long as the it is not going to any exchange, as long as those who offer it are market makers, wont affect anything with bitcoin price.
Anyhow, Mt Gox has been hit by a huge lawsuit yesterday. I hope it’s end wont be like the end of e-gold.
can you link to this lawsuit? Or I guess FM will cover it soon?
can you link to this lawsuit? Or I guess FM will cover it soon?
Oh, good old phone trading :). Such a high-tech asset and such a low level of service provided by third-party infrastructure.
Oh, good old phone trading :). Such a high-tech asset and such a low level of service provided by third-party infrastructure.
Ron, the bitcoin which you and other entrepreneurs are expecting us to use to pay for good services in the future is being hammered by a lawsuit of 75million to one of the biggest exchanges mt gox, which is already stuggling, come on man. read about the e-gold and what happened to it. all people lost their money
Ron, the bitcoin which you and other entrepreneurs are expecting us to use to pay for good services in the future is being hammered by a lawsuit of 75million to one of the biggest exchanges mt gox, which is already stuggling, come on man. read about the e-gold and what happened to it. all people lost their money
@ James and Ron F, Remember also that eGold had a central authority. Part of it was offshore, but the part that was onshore was eventually raided by the FBI. Bitcoin can survive even its creator as it has no central authority; it was designed to. Bitcoin is more for direct person-to-person transactions across distances, without the need for 3rd party validation. Even if one exchanger goes down, another exchanger can spring up; bitcoin can only be temporarily affected as the actual Bitcoins themselves cannot be regulated or sued. Only exchanges or individual users can be attacked. In the instance… Read more »
@ James and Ron F, Remember also that eGold had a central authority. Part of it was offshore, but the part that was onshore was eventually raided by the FBI. Bitcoin can survive even its creator as it has no central authority; it was designed to. Bitcoin is more for direct person-to-person transactions across distances, without the need for 3rd party validation. Even if one exchanger goes down, another exchanger can spring up; bitcoin can only be temporarily affected as the actual Bitcoins themselves cannot be regulated or sued. Only exchanges or individual users can be attacked. In the instance… Read more »